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TOP STORY
BRIEFING: Japan using its glut of gas to spread influence in Southeast Asia at the expense of the climate, critics say
Japan is using its excess volumes of LNG to shape, and in many ways slow down, the energy transition in Southeast Asia, by financing gas infrastructure abroad and promoting transboundary CO2 markets as a decarbonisation solution that critics say is yet-to-be-proven and unrealistic.
EMEA
French election puts ‘industrial green deal’ in the spotlight across EU
Sunday’s voting result in France suggests an ‘industrial green deal’ may be just what the EU needs to create a successful political alliance in the aftermath of snap legislative elections called by President Emmanuel Macron.
France tables CCS strategy, aiming to capture up to 8 MtCO2/y by 2030
The French government put forward its carbon capture, utilisation, and storage (CCUS) strategy on Friday, outlining a roadmap to catch 4-8 million tonnes of CO2 per year by 2030, targeting hard-to-abate sectors of industry across four “CCS valleys”.
Brussels, New Delhi agree to work together on CBAM
The European Commission pledged to work closely with India to help the country adapt to the incoming Carbon Border Adjustment Mechanism (CBAM) fees and introduce its own emissions pricing scheme, during a visit to New Delhi last week.
INTERVIEW: Rio Tinto’s Serbian lithium mine could help clinch the EU’s climate goals
Serbia could start supplying the EU with a stable stock of high-grade lithium within four years, helping the bloc produce enough electric vehicles and hit its climate targets, the managing director of Anglo-Australian miner Rio Tinto’s deposit in the country told Carbon Pulse.
Carbon capture is the big potential of biomethane, says trader
The EU’s 35 billion cubic metres (bcm) a year target for biomethane in 2030 could deliver 50 million tonnes of negative emissions through carbon capture at the biogas-to-biomethane conversion stage alone, according to one of Europe’s large traders.
German steelmaker pursues renewable hydrogen
Germany’s biggest flat steel manufacturer hopes to sign renewable hydrogen contracts from Q1 2025, for first deliveries in 2028 and 143,000 tonnes a year from 2029, according to its head of energy strategy.
Euro Markets: EUAs drop through technical, psychological levels as speculators ramp up selling
European carbon prices dropped by the most in three weeks on Monday as prices tumbled through a key support that had been supporting the market for almost a week, amid aggressive selling from speculative traders that also appeared to trigger a decline in natural gas and power, while UKAs plunged more than 2% as post-election profit-taking continued.
INTERVIEW: Shippers to start pushing up EU carbon price from 2025, analyst says
The year 2025 will mark and inflection point in the way maritime companies account for their CO2 emissions, as shippers start realising the consequences of the sector’s inclusion in the EU’s Emissions Trading System (EU ETS), according to a French academic.
AMERICAS
WCI compliance instrument surplus grows faster in Q2
The WCI compliance instrument surplus continued to build in Q2 as the market marches forward towards the November deadline for true up obligations in the California-Quebec joint carbon market, government data published Friday showed.
RGGI Market: RGA prices recede from highs, remain rangebound as volumes pick up
RGGI Allowance (RGA) values over the past week reversed course from earlier records, but stayed well within the range set since early June, while an uptick in activity ahead of the US holiday boosted ICE volumes to the highest in a month.
Emitters close CCA shorts ahead of ARB workshop, RGGI prices keep market in buy mode
Producers closed out of California Carbon Allowance short interest across futures contract expiry and ahead of ARB’s ETS workshop this week, while traders built RGGI Allowance (RGA) length as prices stay elevated, according to weekly data from the US Commodity Futures Trading Commission (CFTC) delayed due to last week’s US holiday.
Ontario offers large emitters funding through Emissions Performance Program
Canada’s province of Ontario has opened funding applications for large emitters wanting to implement emissions reduction projects under the recently launched Emissions Performance Program (EPP).
Suriname drafts guidelines for developing Paris-aligned carbon credits -media
Suriname has completed draft national legislation to facilitate carbon trading under Article 6 of the Paris Agreement, according to local media.
LATAM Roundup: New regional players lay carbon pricing groundwork
Now on a weekly basis, Carbon Pulse rounds up developments in Latin American and Caribbean carbon markets for the week ending July 7, during which new players have emerged and are taking steps to scale their involvement in international markets, while mitigation schemes remain much the same in Colombia and Brazil.
ASIA PACIFIC
Australian carbon aggregator, project developer lays off staff
An Australian carbon credit provider has gone through a round of redundancies as part of an organisational restructure, Carbon Pulse has learned.
Proposed carbon levy estimated to have limited impact on Taiwan’s economy, ministry says
Imposing a carbon levy on domestic emitters will likely have limited impact on Taiwan’s overall economy, though it remains unclear whether the island will be able to launch its carbon pricing programme next year as planned, according to government meeting documents.
Business coalition urges Japan to ramp up ambition in 2035 NDC
A coalition comprising major tech companies and environmental groups in Japan has called on the government to set an aggressive emissions reduction target for its 2035 nationally determined contribution (NDC).
VOLUNTARY
VCM Report: Summer starts early in the voluntary carbon market with liquidity thin, prices flat
The usual slowdown of the summer holiday season has already arrived in the voluntary carbon market with few major shifts in price, aside from a jump in nature-based spot contracts, and generally weak trading activity this week.
INTERVIEW: Biochar producer demonstrates soil carbon increase, scales up production
A biochar producer has demonstrated a 51% increase in soil carbon in field trials with low levels of biochar applied, and expects to open its second production facility in the next month, with sales of biochar removal credits to improve the affordability of biochar for farmers.
INTERVIEW: Indian developer targets bigger-scale ERW, lower prices
An Indian project developer has ventured into the market for carbon credits from enhanced rock weathering (ERW), eyeing projects that generate more credits and at a lower price than other early movers.
Planted mangroves can store 75% as much carbon as natural ones, study says
Planted mangrove forests can capture up to three-quarters of the carbon found in natural ones, according to a new paper, which could help better assess how many blue carbon credits can be issued from mangrove restoration projects.
Fintech startup adds Islamic finance expert after securing fatwa for voluntary carbon product
A startup focused on exchange-traded voluntary carbon investment products has hired an Islamic finance professional two months after securing a fatwa establishing that the firm’s product complies with shariah, according to a press release issued Monday.
INTERNATIONAL
Road to compliance markets for carbon removals must address CDM -webinar
The lack of an existing precedent for carbon removals under the UN Clean Development Mechanism (CDM) is “a blessing and a curse”, said a member of the Paris Agreement’s Article 6 Methodological Expert Panel during a webinar Monday, as market standards are yet to be developed under Article 6.
High costs and infrastructure hurdles obstruct hydrogen’s role in grid decarbonisation -report
Technical challenges associated with hydrogen use for clean electricity generation continue to hinder its potential in helping decarbonise the power sector, according to a recent study by a US environmental non-profit.
AVIATION/SHIPPING
Shipping industry group calls for universal standards on methane emissions
The shipping industry urgently needs universal standards for measuring methane emissions in order to encourage the use of technologies to cut emissions, an industry-led technical group said on Tuesday.
BIODIVERSITY (FREE TO READ)
UAE fintech partners with Sri Lankan developer to deliver biodiversity, oxygen credits next month
A Dubai-headquartered fintech firm has teamed up with a Sri Lanka-based project developer to generate and issue biodiversity and oxygen credits within a pilot restoration project in the Belipola private forest.
Nordic cohort to develop biodiversity credit methodology for the offshore wind sector in the Baltic Sea
A group of Nordic companies and research institutes have banded together to launch a project aimed at developing a biodiversity credit methodology for the offshore wind sector in the Baltic Sea.
UK Coal Authority to explore nature credits by 2026
The public body in charge of managing the UK’s coal mining legacy has released a nature recovery plan, seeking to include nature-related credits into its financial models by 2026.
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MARKETPLACE LAUNCH
Supercritical launches a world-first in carbon removal: a multi-pathway marketplace with live pricing and availability data for 80% of the biochar market. This launch brings radical transparency to a traditionally opaque market. Underpinned by a rigorous 118-point vetting process, the marketplace ensures quality across biochar and other removal pathways. Real-time data empowers buyers to make informed decisions and transact effectively. Trusted by 1/3 of all corporate buyers, including The Economist Group and Virgin Atlantic, Supercritical is redefining carbon removal procurement. For companies committed to climate action, Supercritical offers a single place to navigate the carbon removal market. FIND OUT MORE
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CONFERENCES
Carbon Forward Expo – October 8-10, London and Online: Save the date! More info coming soon…
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Job listings this week
- *Environmental Markets Correspondent, Carbon Pulse – US/Canada (Remote)
- *Head of Carbon Project Development (m/f/d) – Volkswagen ClimatePartner GmbH – Munich
*Premium listings
See all listings or post a job
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BITE-SIZED UPDATES FROM AROUND THE WORLD
EMEA
Recycling CO2 from steel – ArcelorMittal, Mitsubishi Heavy Industries, and climate tech company, D-CRBN, will work together to trial a new technology to convert CO2 captured at ArcelorMittal’s plant in Gent, Belgium into carbon monoxide which can be used in steel and chemical production. The Gent plant will be the first in the world to trial the process, which uses plasma to convert CO2 into carbon monoxide. The process developed by D-CRBN uses renewable electricity to break the carbon-oxygen bond, thereby converting CO2 into carbon monoxide. The carbon monoxide can then be used as a reductant in the steelmaking process – replacing part of the coke or metallurgical coal used in the blast furnace – or as a basic ingredient in Gent’s Steelanol plant, for chemicals or alternative fuel production. The process required high-purity CO2, to be provided by MHI’s carbon capture unit. The venture will contribute to ArcelorMittal’s climate target to reduce CO2e 35% by 2030 in Europe.
Older and wiser – Europeans aged over 30 have a better understanding of the causes and consequences of climate change than younger generations, but awareness of solutions is lacking across age groups – a survey by the European Investment Bank has found. Some 74% of survey respondents in the EU aged over 30 recognised the importance of recycling, compared to 66% under 30. Nearly half of the older group of respondents were aware of the benefits of insulating buildings to address climate change, compared to around a third of younger respondents. (Clean Energy Wire)
Taking efforts – The state-owned Abu Dhabi National Oil Company (ADNOC) has reduced 6.2 mln tonnes of CO2 in Scope 1 and Scope 2 emissions in 2023. The reduction included 4.8 Mt from using clean grid energy from solar and nuclear power, ADNOC said in its 2023 sustainability report. The oil company’s net zero goal was brought forward by five years to 2045 by the UAE government in 2023. Further decarbonisation plans of the company include a $3.8 bln project to connect its offshore operations to clean grid power, which will reduce its offshore carbon footprint by up to 50%. It also includes the construction of a 1 mln tonne per annum low-carbon ammonia production facility to help its customers decarbonise.
Let the wind blow – The UK’s new Labour government is moving quickly to unleash the rollout of clean energy and infrastructure, including by immediately revoking a ban on new onshore wind in England, Chancellor Rachel Reeves announced in her first speech on Monday. The government intends to consult on bringing onshore wind back into the regime of Nationally Significant Infrastructure Projects, which would shift the decision on large developments to national, rather than local, authorities, she said. ScottishPower CEO Keith Anderson said he welcomed the “clear sense of urgency and direction” set out in Reeves’ speech, adding that the company will look to double its investment over the coming years if the UK can halve the time it takes to get renewables, electricity grid, and storage projects through planning. The de facto ban on onshore wind in England, in place since 2015, has been lifted in a policy statement on July 8.
Job guarantees – The new UK government will press for job guarantees in return for taxpayer-funded investment during talks with steel producer Tata over the future of Port Talbot in South Wales, with negotiations ongoing, reports the Independent. Tata has shut down one of two blast furnaces at its biggest plant under its plans to switch to a greener form of production, with the second blast furnace due to be closed in September. The changes are expected to lead to the loss of around 2,800 jobs unless a work-around can be reached. The Labour manifesto committed to providing £2.5 bln to rebuild the country’s steel industry.
African emissions – GHG emissions in West Africa would be reduced were a carbon market framework and tax regime effectively implemented, said environmental experts during a workshop by the Resource and Environmental Policy Research Centre in Abuja. EfD researcher Chizoba Oranu said that Nigeria’s carbon market and registry are underway, and the National Council on Climate Change is developing the carbon tax framework. The challenges of removing fuel subsidies and implementing production taxes on African consumers were also raised during the event.
ASIA PACIFIC
Roadblocks – A proposed green industrial hub in Western Australia is facing a litany of roadblocks, due to lack of planning from the state government, the Nine Newspapers report. The Kwinana heavy industrial area is being touted as an area that could be the site of battery minerals processing and green hydrogen and biofuels production, however an industry body said current land restrictions, and a lack of capacity in the area’s electricity grid could dampen investment opportunities. The Kwinana Industries Council said it wants beefed-up transmission capacity, and road and rail upgrades to be brought forward.
Disappointing performance – Hyundai, one of the world’s largest automakers, saw its global emissions increase by 6% in 2023, an increase that alone exceeded the total emissions of Costa Rica, according to Greenpeace East Asia. Although the Korean carmaker is often seen as a leader in electrification, the vast majority (93.5%) of Hyundai vehicles sold in 2023 contained an internal combustion engine, Greenpeace said, citing data from the company’s latest sustainability report. The non-profit also noted that Hyundai has doubled down on hybrids, a sales strategy “that is not compatible with full decarbonisation,” given that lifecycle emissions from hybrids on average are just 20.5% less than those from traditional combustion engine vehicles.
Solar initiative – Google has teamed up with investment firm BlackRock to fund the construction of a massive solar energy project in Taiwan, according to a company statement. The two companies aim to support the development of a 1 gigawatt (GW) pipeline of new solar capacity in Taiwan through investment in New Green Power (NGP), a Taiwanese solar developer and BlackRock portfolio company. Google plans to procure up to 300 MW of solar energy from this pipeline through power purchase agreements (PPAs) and the associated energy attribute certificates (Taiwan Renewable Energy Certificates or T-RECs) to help meet electricity demand from its data centres, cloud region and office operations across the island.
Second tender – The Solar Energy Corporation of India (SECI) has issued a second tender for setting up 450,000 tonnes annual production facilities for green hydrogen and its derivatives under the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme. Last month, SECI issued the first tender for the selection of green ammonia producers through a cost-based competitive bidding process. Later, India’s Ministry of New and Renewable Energy (MNRE) updated the scheme guidelines for the National Green Hydrogen Mission (NGHM) and increased the capacity set for bidding of green ammonia from 550,000 tonnes per annum to 750,000 tonnes per annum, due to increase in demand for fertilisers. Under the NGHM, India has set itself a target to achieve production capacity of 5 Mt per annum of green hydrogen in the country by 2030.
AMERICAS
Utah oddity – Representative John Curtis (R), the Republic nominee and heavy favourite for Utah’s senatorial election in November, has won the endorsement of EDF Action, the advocacy arm of the Environmental Defense Fund, reported Politico. Although many other environmental groups are lining up with the Democratic candidate as normal, the endorsement highlights a split in the environmental community over how to respond to GOP lawmakers who back action to fight climate change. Curtis could be in a position to provide a crucial GOP vote against the gutting of President Joe Biden’s energy and climate policies during a potential second Trump administration. Although Curtis voted against the Inflation Reduction Act (IRA), he has said he supports pieces of it – such as tax incentives for carbon capture, nuclear, and hydrogen projects – and rejected calls for a wholesale repeal. Finally, Curtis also founded the House of Representative’s Conservative Climate Caucus.
CO2 storage impacts – An application from Moxa Caron Storage to sequester CO2 underground in southwestern Wyoming could displace or disrupt a number of species, the Bureau of Land Management said in a draft environmental assessment, E&E News reported Monday. Moxa Carbon’s Southwest Wyoming CO2 Sequestration Project looks to store CO2 in 605,000 acres (244,800 ha) of publicly-managed pore space in Wyoming’s Lincoln, Sweetwater, and Uinta counties. A public comment period on the draft analysis is open until July 30.
2x CO2 capture – A carbon capture prototype at power generation firm ESG Clean Energy’s facility in Holyoke, Massachusetts, enabled twice as much carbon to be captured per pound of adsorbent, the company announced last week. The firm said its prototype uses zeolite, and the results will reduce the size and cost of carbon capture systems. It was tested at ESG’s 4.4 MW gas-fired power generation plant in Holyoke, which serves the local electrical grid. It has licensed the technology to a subsidiary of energy firm Camber Energy across Canada and multiple locations in the US.
VOLUNTARY
Seller switch – James Chin Moody, CEO of Sendle, An Australian delivery startup, has disclosed that his company ceased purchasing voluntary carbon credits from South Pole following the scandal involving the overstatement of tree protection in Zimbabwe. “The credits we had purchased were not the questionable ones which were the ones that were raised by that article,” Chin Moody told AFR. He added that the controversy led Sendle to switch to other verified suppliers – Tradewater and Patch – to ensure their carbon sequestration efforts were legitimate. (AFR)
Forest land for sale – Timberlands investment manager Wagner Forest Management is considering strategic alternatives that potentially include the sale of 480,000 acres (194,000 hectares) of timberlands in Ontario, according to a Monday press release. Wagner said it has retained TAP Securities as its financial advisor, and TAP is preparing marketing materials describing the property and its potential as an investment for a large nature-based carbon project. The company claimed this would present an opportunity to generate millions of reductions and removals credits.
DAC scale-up – Climate tech company Yama has raised $3 mln to fund development of its electrochemical direct air capture technology, the company announced on LinkedIn last week. The firm cited investors such as the Grantham Foundation Foundation for the Protection of the Environment, Plug and Play Tech Center, and Susquehanna Sustainable Investments. Yama named firms Milkywire and Klarna as among its first buyers for upcoming delivery of credits in the next six months.
SCIENCE & TECH
Above Paris – According to the EU Copernicus Climate Change Service (C3S), June marked one year of global temperature reaching 1.5C above pre-industrial levels, the climate target set by the Paris Agreement. The global-average temperature for the 12 months is the highest on record, at 0.76C above the 1991-2020 average and 1.64C above the 1850-1900 average. In Europe, temperatures were most above average over southeast regions and Turkiye, but near or below average over western countries, Iceland, and northwestern Russia. Outside Europe, temperatures were most above average over eastern Canada, the western US and Mexico, Brazil, northern Siberia, the Middle East, northern Africa, and western Antarctica.
H2 partners – Boson Energy has signed a Memorandum of Understanding (MoU) with Siemens to produce hydrogen by converting non-recyclable waste using its Hydrogen by Plasma Assisted Gasification (HPAG) technology. Boson Energy aims to have over 300 such plants in place by 2030, producing 1 mln tonnes of circular hydrogen from waste, with the hydrogen to support off-grid applications like fast charging. The projects will first be rolled out in Sweden, Poland, and Germany, and as technology partner, Siemens will assist Boson in building a scalable and repeatable solution.
AND FINALLY…
Plant-based NASCAR – The National Association for Stock Car Auto Racing (NASCAR) debuted over the weekend the first US racecar with a body made of plant-based materials. Showcased at the Xfinity Series Chicago Street Race on July 6, the car’s exterior is made of flax-based composite from Swiss startup Bcomp, enabling an 85% emissions reduction in the manufacturing process compared to traditional carbon-based materials. NASCAR committed last year to achieving net zero operating emissions by 2035.
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